Queensland Pacific Metals Ltd (ASX:QPM) has received a strong vote of confidence in its TECH Project in North Queensland with the Northern Australia Infrastructure Facility (NAIF) progressing to detailed due diligence of the Strategic Assessment Phase (SAP).
This progression comes after QPM received written confirmation that the Strategic Assessment Phase (SAP) of the NAIF Application process was completed successfully.
Key milestone
It represents a key milestone in QPM’s engagement with NAIF and overall funding strategy and is an important step in identifying the optimum funding sources required to build the TECH Project.
The decision follows QPM’s extensive engagement with NAIF and the provision of detailed technical and
financial information regarding the project, its associated infrastructure requirements and benefits that will flow to local communities in and around Townsville.
“Vindication of opportunity”
QPM managing director and CEO Stephen Grocott said: “I am delighted that NAIF has accepted the TECH Project to move into the due diligence stage.
"This is vindication of the opportunity we have to build a world-leading manufacturing facility of battery metals which will be a game-changer for nickel laterite processing, whilst also delivering significant benefits to Townsville and Greater North Queensland.
"I would also like to express my appreciation to the NAIF team for their professionalism in understanding the TECH Project and its technical and commercial elements.”
Benefits to Townsville
The SAP outlined the benefits of the TECH Project to Townsville and surrounding North Queensland regions including employment opportunities, indigenous engagement and flow on effect to supporting industries.
QPM now intends to submit a formal investment proposal to NAIF and will work with NAIF to provide the required information to complete its due diligence investigations regarding participation in the debt facilities that will (partially) fund the TECH project.
NAIF has not made any decision to offer finance or made any commitment to provide any financial accommodation and there is no certainty that an agreement will be reached between the parties.
Key step in financing process
QPM is actively working on securing its debt and equity financing solutions that are required to reach Final Investment Decision.
NAIF’s decision to progress to due diligence stage is a key step towards attracting other debt financiers and building the optimum debt syndicate.
QPM’s TECH Project also fits in the Federal Government’s National Manufacturing Priorities – critical minerals processing to produce essential battery metals for the Electric Vehicle sector.